Business
ENI and Grove agree the process for Unification of the Abbadesse and Longanesi Discoveries in Italy
ENI and Grove agree the process for Unification of the Abbadesse and Longanesi Discoveries in Italy.
About this update from Surge Copper Corp.
[{"type":"text","content":"\n\n\n\nVANCOUVER, Dec. 19 /CNW/ - Grove Energy Limited (\"Company\") (TSX-V &\nAIM: GRV), the oil and gas exploration company with assets in Europe and the\nMediterranean Margin, advises that Grove and ENI S.p.A (\"ENI\") (the \"Parties\")\nhave entered into an agreement to proceed toward unification of the Abbadesse\nand Longanesi discoveries. The intentions of this agreement are:\n\n\n- To undertake a joint technical study to define the area of a natural\n gas field (the \"Field\") that appears to extend from Grove's San Marco\n Permit and Casale Cocchi Application into ENI's San Potitio\n Concession. The Field will be known as Longanesi;\n- Concurrently with completion and agreement of the study negotiate and\n execute a Pre Unification Agreement; and\n- Proceed with unification of the Field.\n\n\nThe joint technical study is scheduled to start at ENI's offices in Milan\non 8 January 2007 and the technical teams will endeavour to complete the study\nwithin one month and thereafter prepare a report for each Party's respective\nboard approval. The study will define the area of the Field, the volume of gas\nin place and provisional allocations of equity interests. In the event that\nthe technical teams do not agree on these matters an independent expert will\nbe engaged to make the necessary determinations, including each Party's\ninitial participating interest.\n\n\nTiming of first production will, primarily, be a function of when the New\nConcession application and field development plan is lodged and approved\npursuant to Italian law and respective corporate approvals as required by each\nParty. It has been agreed that ENI will be appointed Operator and will be\nresponsible for the approval and regulatory process and that each Party will\nhave the right to market its own gas.\n\n\nDevelopment of the Abbadesse/Longanesi field has been delayed because\nItalian law requires that natural resources be exploited in the most efficient\nmanner; resulting in the Italian Ministry of Economic Development directing\nENI and Grove to pursue joint development of their respective gas reserves.\n\n\nGrove's Abbadesse-1 discovery well was completed as a production well in\n2005. Testing of Abbadesse-1 recorded aggregate gas flow rates in excess of\n15 million standard cubic feet per day or approximately 2,560 barrels of oil\nequivalent p...